Extending comprehension competency focus

 

Answering WHY questions: Speak up your mind.

 

1. Why is our ability to consume so important in the economic system?

2. Why does education make difference in a person’s earning power?

3. Why are scarce resources important in consumer decisions?

4. Why does opportunity cost concern consumer decisions?

5. Why are we engaged in a rational choice each time when we make consumer decisions?

Critical thinking (Discussion competency): Discuss the following questions in groups/pairs.

     (1) Write down your opinion in note form;

(2) Prepare for discussion: revise the speech formulas

 

Exploring issues: 1. Think about a recent purchase you made. What were your reasons for buying the item? Was it a good consumer decision?

 

2. Copy the diagrams below, and in them list four items you would like to purchase now (Spending) and four items you would like to save for and buy later (Saving).

 

 

Drawing conclusions: Complete the sentence below:

       A healthy person will have _________ earning power than a person with

      poor health.

Write two facts that support the conclusion.

1)_______________________________________________________________

2)_______________________________________________________________

 

Solving problems and finding solutions:

1. Is discretionary income also disposable income? Explain.

2. How can employed consumers determine a value for their time?

 

Reviewing: Watch video “How People Make Economic Decisions”. Have you learnt anything new about decision making as a consumer? Answer the following questions:

1. What are the principles of decision making?

2. What issues is making choices directly related to?

3. How do you understand the concepts of (a) sustainability, (b) marginal change?

 

Synthesizing information: How would the factors of scarce resources, opportunity cost and rational choice affect your decision whether to go to University?

 

Making inferences: The circle graph shows how Americans, as a whole, spend their income. Note that both needs, like food, and wants, like entertainment, are included in consumer spending. What are the top three categories of consumer spending?

In what way can this graph be different from a similar one showing consumer spending of Russians? Will the top three categories of consumer spending be the same?

 

 

Categorizing information: Draw a circle graph  like the one shown. Develop categories that reflect how you spend your income. Then calculate and analyze the amount you spend in each category. Transpose this amount into a percentage to show your personal consumer spending as a circle graph.

 

Applying information (Team work competency): All of the steps in consumer decision making involve opportunity cost – the value of your highest alternative that you didn’t make. Work in small groups to conduct a survey on how the consumers decide how to make purchases. Follow the next steps:

1. Create the questionnaire based on the information from the table “Checklist for consumer decision making”.

2. Use the questionnaire to survey the “consumers” - students from another group.

3. Use your finding to create a report on consumer decision-making behavior.

4. Present your report to the class.

 

CHECKLIST FOR CONSUMER DECISION MAKING

Part A. Deciding to Spend Your Money Before you buy anything you should ask yourself:

1. Do I really require this item? Why? Real needs are few but wants are unlimited. 2. Is this good or service worth the time I spent earning the income to pay for it? 3. Is there a better use for my income now? Should I save instead for future needs?

Part B: Deciding on the Right Purchase After you have made up your mind to buy a good or service, you are faced with more questions:

1. Do I want high, medium or low quality? For a higher price you can usually get a higher quality. For a lower price you can usually expect a product that may not be so attractive or as long lasting. At times, such a purchase may suit your needs very well, however. 2. Does this particular item – a brand laptop, for example – require more service than brands A, B and C? If so, do I want this additional problem and expense? 3. Should I wait until there is a sale on the item I want? 4. If I’m looking for an expensive item, should I buy it new or used? What things are better to buy new than used? 5. Should I choose a product with a well-known brand name even though it costs more than a similar product without a brand name? Are there any benefits to buying brand- names? 6. Does anyone I know own this product so I can have a firsthand opinion?

Part C: Deciding how to use your purchase Once you own something, you must decide:

1. How much time and effort should I spend personally repairing and maintaining the product? 2. How much should I spend on repairs and maintenance? 3. At what point should I replace the item?

 

Enjoying comprehension competency focus: